WELSH Labour MEP Derek Vaughan has been named the lead negotiator for the European Parliament to secure the future of structural funds.

Mr Vaughan told the Western Mail he will fight to prevent a cut in funding for West Wales and the Valleys and work to increase it.

As of last month, a total of 253 projects had been approved EU funds worth £1.6bn for the period 2007–2013. This followed more than £1.5bn received during 2000-2006.

The next funding period will run until 2020 and Mr Vaughan has been alarmed by reports that governments are pushing for a freeze or a cut in the funding for some of Europe’s most deprived regions.

He said: “That’s why its important to get it right now, because it’s a seven-year programme. If there isn’t enough money in the budget at the start it’ll cause problems for the full seven years.”

The former leader of Neath Port Talbot council has also been invited to bring forward his own proposals to ensure the effectiveness of projects.

He said: “Structural funds are vital in supporting areas like West Wales and the Valleys which continue to face long-term challenges in tackling deprivation and economic and social inequalities. With talks ongoing about the future direction of EU regional policy for the period 2014-2020, there is a huge responsibility to ensure that funding is carefully targeted at creating more sustainable jobs and growth.”

He added: “The current round of structural funding has already helped nearly 29,000 people into work in Wales and over 6,000 Welsh businesses to expand. Since I was elected two years ago, I made it a priority to put the case for Wales when it comes to securing structural funding.

“I will continue to safeguard the billions of pounds worth of investment that they bring to Wales. In my new role I look forward to leading for Labour and the European Parliament on this – and as importantly, leading for Wales.”

Welsh Conservative MEP Kay Swinburne said: “I welcome my fellow MEP's involvement as a rapporteur on these dossiers and will continue to work closely with him on these Welsh issues. However, it is the inability of Derek's Labour colleagues in government in Wales to spend the structural funds effectively that most concerns me most.

If they had achieved better outcomes from the current 2.6bn euros at their disposal maybe we could have improved our economy to rank with the best, and not the worst in the EU.”

Plaid Cymru Welsh MEP Jill Evans said: “It is good news that an MEP from Wales will be part of the budget discussions. The four Welsh MEPs have worked together to retain structural funds so the size of the budget will be crucial.

“Any cuts will reduce the money we so badly need for economic regeneration.”

Former Labour Foreign Secretary Jack Straw has called for structural funds to be “repatriated” to the UK on the grounds that Britain would get a better deal if it was responsible for distributing regional aid.

The Welsh Government stated it did not agree with Mr Straw and the proposals were “not in Wales’ best interests”.